Bitcoin Price Advancing In A Correction?

Bitcoin price spent Saturday day-time in persistent advance. At the time of writing this analysis price has fallen back to support. Which side of support the arket settles price today will determine if next week falls into decline or sees renewed advance.

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Bitcoin Price Analysis

Time of analysis: 14h30 UTC

OKCoin 3Mth 15-Minute Chart

From the analysis pages of xbt.social, earlier today:

The 15-minute OKCoin 3month chart, above, shows that price has pushed above a long-term trendline that resisted advance at the recent high. Not only that, but the same trendline also stopped advance at the November top.

If trade can maintain price action above the trendline, then the chart will have bullish bias, but even so, there is the level of the recent high annotated in blue. Price will have to break above the previous high to confirm the bullish trend.

If price falls back below the trendline, today or on Sunday, then we should see ongoing correction seek out support below $360 (OKCoin) and $350 (Bitstamp).

Magenta annotations show a combination of regular divergence followed by reverse divergence that could sling-shot price to an additional high.

Summary

Bitcoin made a move higher today but existing resistance near $380 and 2450 CNY had constrained advance. Higher in the chart there is also the recent high near $400 and 2480 CNY that will hinder upside progress – if the market attempts it. If price falls below long-term support at $370 (Bitstamp) then price correction should see price decline back to at least $350 (Bitstamp).